More seek H.C. loans

Press, 27 May 1978, Page 6

More seek H.C. loans

Applications for Housing Corporation finance in Christchurch had more than doubled since February, said the manager of the Christchurch branch (Mr G. E. Corry') yesterday. The corporation now received about 70 loan applications each week. Those who were eligible and applied for a loan would get one, as long as they could afford the repayments, said Mr Corry. The new owner must also have an equity in the property. Although the Housing Corporation did have a spending target, regional offices were not tied to a

; particular sum for loans, he; i said. The increase in appli-l Ications had come since policy! ’ changes: since February new; home buyers might borrow ) up to $20,000. Single persons also had: ’ been able to borrow money i , for new homes since Octo-! . ber last year, if they had a; ■ one-third deposit, but they! ! had never been eligible for l ‘ loans to buy existing homes. i , When asked why the! ! building industry was not! j feeling the effects of the i marked increase in home 1 loans, Mr Corry said that, t many of the applications 1

I were for finance for home alterations or improvements, or to buy existing houses. The Housing Corporation’s policy on finance for existing homes had been relaxed con-! ) siderably in the last two 'years and loans of up to i $17,500 were now available. lln 1970, a married couple (had to have four children to Ibe eligible. Now they need 'have only two children for I this loan provided they capitalised on the family benefit, ■Mr Corry said. Low-start mortgages with initial reduced payments I were also attractive to home 'buyers, he said.